Krispy Kreme Doughnuts, Inc. will become a privately held company after announcing Monday it has entered into an agreement to be acquired by private equity firm JAB Holding Company for approximately $1.35 billion.

JAB Beech Inc., an indirect controlled subsidiary of JAB Holding Company—which has controlling stakes in Keurig Green Mountain, Jacobs Douwe Egberts, Peet's Coffee & Tea, and Caribou Coffee Company—will acquire Krispy Kreme for $21 per share in cash. The agreement, which has been unanimously approved by Krispy Kreme’s Board of Directors, represents a premium of approximately 25 percent over the company’s closing stock price on May 6. At the close of the transaction, Krispy Kreme will be privately owned and will continue to be independently operated from Krispy Kreme’s current headquarters in Winston-Salem, NC.

Founded in 1937, Krispy Kreme now operates more than 1,100 doughnut and coffee shows in over 26 countries.

The transaction must now receive regulatory and shareholder approval and is expected to close in the third quarter of 2016.